What is Conversion Tracking
Conversion Tracking measures or tracks specific completed goals or data points. A conversion is when an app or website visitor performs a desired action like purchasing, subscribing to an email list, or submitting a contact form. Conversion Tracking is when these actions are tracked to identify a behavioral pattern.
How to Calculate Conversion Rate
The conversion rate is calculated in a fairly straightforward manner. Dividing the number of conversions by the total ad interactions that can be tracked to a conversion within a given period, yields the conversion rate.
Let's illustrate this better with an example.
The number of conversions= 80
The number of interactions= 1,000
Conversion Rate = (80/1000)x100%= 8%
Importance of Conversion Tracking
Conversion Tracking is crucial to understand the performance of your ad campaigns. It allows you to see the ads that are driving more users to convert. With this data, you can make adjustments to your campaign, keywords, budgeting, and more. Simply put, Conversion Tracking enables you to maximize ad revenue and save money.
How to Track Conversions
In order to track conversions, you must first define your conversions, install a tracking tag, and choose an attribution model.
Attribution modeling is required to be set within your conversion tracker. If a user interacts with more than one ad of yours without completing a conversion action, an attribution model will decide if an ad must get credit for it.
Conversion value allows you to assign a specific value to a given action.
Conversion Tracking can be used for the following actions:
- Website actions: These include purchases or sign-ups that customers complete on a website.
- Phone calls: These are calls that come directly because of an ad or these could be calls to a phone number on a website or clicks on a phone number on the mobile website.
- App installs/ in-app actions: Installs of an Android or iOS app or purchases made within these apps.
- Local actions: These actions are when people interact with an ad that is location-specific.
Types of KPIs to factor in while Conversion Tracking
- Number of conversions: The total number of conversions that took place.
- Conversion rate: The ratio of conversions to people reached. It is usually applied more to websites where the ratio of purchases to website visitors can be calculated in a more distinct manner.
- Bounce rate: The comparison between the number of single-page visits and the number of website visits.
- Session duration: The time taken by an average visitor on the website during their visit.
- Events: It includes clicks on social media, video plays, downloads, newsletter subscriptions, and more. If these events take place frequently, it means that the website is converting visitors.
- Cost per acquisition: It determines the money your domain has spent per conversion. It indicates the average amount you have spent to acquire a new user.